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-   -   Canadian Office Space Market (https://skyscraperpage.com/forum/showthread.php?t=192174)

freeweed Jan 12, 2012 4:09 PM

And Calgary isn't even technically "booming" yet.

miketoronto Jan 12, 2012 4:26 PM

Quote:

Originally Posted by WhipperSnapper (Post 5529295)
I know exactly what you're thinking. Tax breaks for the city's former boroughs would be at best a band-aid solution. It may lead to some development

Toronto needs to adjust the tax rates. The outer 416 loses out because the 905 is so close and offers cheaper tax rates, with the same style of development(suburban office park style development).

One only needs to go to Steeles Ave(the border between 416 and 905). Almost no office buildings on the south side of the street(City of Toronto), but a bunch on the north side of the street(Town of Markham).
IBM for example is on Steeles Ave, but on the Markham side, while enjoying Toronto services like TTC.

If you look at this view. The lone office tower on the right side of the street, is on the Toronto side of Steeles Ave. The City had a lot of negotiations to do to get that building built on the Toronto side. It made a ton of news when it was built, because it was being built in Toronto and not Markham.
http://maps.google.ca/maps?q=steeles...73.82,,0,-9.87



And a lack of regional planning has gotten us into this situation as well. Because the 905 was under no form of GTA wide metro government, office development was not as controlled as it was in the former METRO, where office space was concentrated near subway stations(over 90% of office space was built on the subway network).


Quote:

but, in the end, a large sum of people live and want to work in the 905. Why would an employer not take advantage of lower costs, ample parking, and less distractions.
I question that view. In many cases it is easier for someone to hop a GO Train into downtown, than drive across the 905 to work. In fact I don't really know many people that enjoy working in the 905, and various reports paint the same picture.
In fact one report I read years ago about why business locate in the 905, had one of the main reasons being that the workers find it so dull in the 905 that they take less of their mandated breaks. Where if they are downtown(which employee survey's found people like to work), they use their breaks instead of working through them.

shreddog Jan 12, 2012 4:31 PM

Quote:

Originally Posted by caltrane74 (Post 5377322)
...Coming down from 10% will be hard especially when the 2 million square feet inside the Bow comes online.

Sorry Caltrane - not trying to call you out this - rather just focusing on the level of activity in Calgary right now. As per the article from Freeweed, over 3.75 M sq ft has been absorbed this year:
Quote:

...
“This demand has very quickly wiped out all the available space brought on to the market by the last building cycle and has rapidly pushed the market into a new building cycle as the 786,000-square-foot Eighth Avenue Place, West Tower will be commencing construction immediately,” he said.
...
“In addition, Oxford Properties is experiencing strong interest in its 613,000-square-foot Eau Claire building ... An announcement to commence construction could be imminent. As well, Brookfield Properties is preparing its Herald building site (downtown) for redevelopment by announcing the demolition of the old Herald building, thus making way for a 1.2 million-square-foot office tower.”
...
The major demand by building class for space during the fourth quarter of 2011 was in the Class ‘A’ inventory which had 380,000 square feet of take up, thereby dropping Class ‘A’ vacancy to a minuscule 1.7 per cent, he said.
...
Year to date, the Class ‘AA’ inventory has performed the best with the vacancy rate falling from 12 per cent at year end 2010 to an extremely low 1.3 per cent and Class ‘AA’ demand surpassed 1.4 million square feet of take up for the year.
...
At year-end 2011, vacancy was at 5.3 per cent in the downtown market, dropping 9.2 per cent during the year....
And while industry is certainly stockpilling space, the environment here is still not as frantic as 2006-8. It will be interesting to see if 2013/14 will see a larger number or cranes DT than during the last boom??

yaletown_fella Jan 12, 2012 5:29 PM

Quote:

Originally Posted by canarob (Post 5529710)
This is a good point. People want to live in downtown Toronto or the 905 but for the most part don't want to live in the inner burbs.

I beg to differ. The inner suburbs often offer more established neighborhoods with considerably larger lots, greenspace, local and chain retail within walking distance, and of course TTC transit options.

miketoronto Jan 12, 2012 6:01 PM

Quote:

Originally Posted by yaletown_fella (Post 5547289)
I beg to differ. The inner suburbs often offer more established neighborhoods with considerably larger lots, greenspace, local and chain retail within walking distance, and of course TTC transit options.

And the houses are more expensive representing this. The only people who move from the inner suburbs to the 905 are people who grew up in the inner suburbs, and usually feel they need to move to the 905 or downtown to try something new. Or people who can't afford the inner suburbs, move out to the 905, because they can get larger homes for cheaper prices.

The the inner suburbs are not low class places no one wants to live in. Come to my street, and a bungalow will set you back $500,000.

Surrealplaces Jan 14, 2012 12:24 AM

Things heating up in Calgary. From the Calgary construction thread.

Quote:

Originally Posted by polishavenger (Post 5549331)
looks like one of the best projects (city center) is gearing up for construction

http://www.calgaryherald.com/busines...846/story.html


Doug Jan 14, 2012 1:10 AM

Could see three 500 ft+ buildings u/c in Calgary this year, representing just under 3M sq ft:
-EAP2
-Herald Square
-City Center

Wooster Jan 14, 2012 1:14 AM

Quote:

Originally Posted by Doug (Post 5549481)
Could see three 500 ft+ buildings u/c in Calgary this year, representing just under 3M sq ft:
-EAP2
-Herald Square
-City Center

Which is still less than what downtown absorbed in 2011.

Quote:

This week, Michael Gigliuk, vice-president, associate with Newmark Knight Frank Devencore in Calgary, described the Calgary downtown office market as “astounding” as total demand in 2011 was more than four times the 10-year historical average. Total absorption — the change in occupied space — was 3.75 million square feet during the year, including the Bow tower which will be completed this year and become the home for energy giants Encana and Cenovus.

Spring2008 Jan 14, 2012 1:43 AM

Quote:

Originally Posted by Doug (Post 5549481)
Could see three 500 ft+ buildings u/c in Calgary this year, representing just under 3M sq ft:
-EAP2
-Herald Square
-City Center

Oxford's Eau-Claire Office tower(~650,000sq feet) is in pre-leasing stages and they're ready to make an announcement soon as well.

Jimby Jan 14, 2012 2:42 AM

Strategic on 4th St SW, low rise office, u/c

Also possibilities:

Matthews Southwest - Bow 2
Aspen Properties - twin Palliser Square towers
Atco 3
Century Gardens - 40 storey office next to Nexen
First Canadian Centre tower 2 - dreaming!
Centron - Gateway Midtown office
Eleventh Avenue Place formerly called Prism Place
something from Bentall? they put up Livingston Place and Jamieson Place early in the last boom so I'm sure they have something planned.
Quarry Park
Beltline Square - mixed use on an entire city block of over 3 acres just 2 blocks south of the Calgary Tower

taal Jan 14, 2012 4:53 AM

I made this post over on UT:

This is from York region:
2006 (total jobs): 462,320 jobs
2031 (total jobs): 798,800 jobs

Mississauga is to be around 550K in 2031 from around 400K or so ... so not as much growth, still a huge amount.

From a Toronto report:
2001:
Rest of GTA: 1.30M
Toronto: 1.44M

2031:
Rest of GTA: 2.39M
Toronto: 1.64M

- So Toronto effectively stagnant.

That's a crazy change, the report wasn't hinting that there was anything wrong with this either.

Maybe this is the norm in North America ?

caltrane74 Jan 14, 2012 5:49 AM

200,000 jobs is enough for another half million more people.

City of Toronto can hold 3 million people MAX!

Jimby Jan 14, 2012 5:24 PM

and Toronto's future population has what direct connection to the thread topic?

caltrane74 Jan 14, 2012 8:13 PM

I'm sure job growth and demand for office space tie in together somewhere.

WhipperSnapper Jan 14, 2012 8:16 PM

Quote:

Originally Posted by miketoronto (Post 5547201)
Toronto needs to adjust the tax rates. The outer 416 loses out because the 905 is so close and offers cheaper tax rates, with the same style of development(suburban office park style development).

One only needs to go to Steeles Ave(the border between 416 and 905). Almost no office buildings on the south side of the street(City of Toronto), but a bunch on the north side of the street(Town of Markham).
IBM for example is on Steeles Ave, but on the Markham side, while enjoying Toronto services like TTC.

If you look at this view. The lone office tower on the right side of the street, is on the Toronto side of Steeles Ave. The City had a lot of negotiations to do to get that building built on the Toronto side. It made a ton of news when it was built, because it was being built in Toronto and not Markham.
http://maps.google.ca/maps?q=steeles...73.82,,0,-9.87



And a lack of regional planning has gotten us into this situation as well. Because the 905 was under no form of GTA wide metro government, office development was not as controlled as it was in the former METRO, where office space was concentrated near subway stations(over 90% of office space was built on the subway network).




I question that view. In many cases it is easier for someone to hop a GO Train into downtown, than drive across the 905 to work. In fact I don't really know many people that enjoy working in the 905, and various reports paint the same picture.
In fact one report I read years ago about why business locate in the 905, had one of the main reasons being that the workers find it so dull in the 905 that they take less of their mandated breaks. Where if they are downtown(which employee survey's found people like to work), they use their breaks instead of working through them.

Suburban office parks style development require an inordinate amount of cheap property to be successful. When was the last office tower built on Steeles in Markham? Surely, long before the Steeles Tech Centre on the south side of Steeles.

I don't need reports. I have first hand experience from 1000 of workers. The majority of the 905 residing employees welcomed the relocations from downtown to their backyards. For most of them, the GO is hardly a convenience; the frequency isn't ideal and the stations are far enough apart that most must drive to them.

taal Jan 14, 2012 9:07 PM

Quote:

Originally Posted by caltrane74 (Post 5549747)
200,000 jobs is enough for another half million more people.

City of Toronto can hold 3 million people MAX!

Sure but look how many more jobs will be outside the 416 ! by 2035/40 there will be more then 2X the jobs outside the city. I guess the population difference may be similar.

taal Jan 14, 2012 9:07 PM

Quote:

Originally Posted by WhipperSnapper (Post 5550243)
Suburban office parks style development require an inordinate amount of cheap property to be successful. When was the last office tower built on Steeles in Markham? Surely, long before the Steeles Tech Centre on the south side of Steeles.

I don't need reports. I have first hand experience from 1000 of workers. The majority of the 905 residing employees welcomed the relocations from downtown to their backyards. For most of them, the GO is hardly a convenience; the frequency isn't ideal and the stations are far enough apart that most must drive to them.


Actually there have been a few just recently North of York universality in Vaughan.

WhipperSnapper Jan 14, 2012 9:15 PM

There's a reason I said Steeles in Markham and excluded the greenfields in Vaughan. Anyways, Steeles is but one street in the region. Why are companies choosing Aurora and Milton over Don Mills or, better yet, Heartland over Mississauga City Centre? Taxes are easily quantified compared to the numerous reasons for relocation and for this reason are greatly overblown as the cause and solution to making the former boroughs more competitive to white collar jobs.

Chinook Arch Jan 16, 2012 3:00 PM

Another office tower looks to be going ahead in Calgary.

Quote:

Originally Posted by Ferreth (Post 5551627)
From the Calgary Herald Website, posted Sunday January 15th:



Read more: http://www.calgaryherald.com/Another...#ixzz1jaOdNvsv


City Center

http://img713.imageshack.us/img713/1...1326726130.jpg

miketoronto Jan 16, 2012 4:43 PM

Quote:

Originally Posted by WhipperSnapper (Post 5550331)
There's a reason I said Steeles in Markham and excluded the greenfields in Vaughan. Anyways, Steeles is but one street in the region. Why are companies choosing Aurora and Milton over Don Mills or, better yet, Heartland over Mississauga City Centre? Taxes are easily quantified compared to the numerous reasons for relocation and for this reason are greatly overblown as the cause and solution to making the former boroughs more competitive to white collar jobs.

That is why we need a metropolitan government plan again, to limit office sprawl to areas like Milton, etc, when there are areas close in which can still be developed.
I like my friends idea. No major office development should be approved if it is not next to a GO Train Station, in the 905.


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